“(Reuters) – Discount chain Dollar General Corp cut the top end of its full-year profit forecast, citing moderating sales growth and a lower gross profit rate, sending its shares down 5 percent in premarket trading.
The company, which prices most of its merchandise below $10, cut the high end of its earnings forecast range to $3.22 per share from $3.30. The low end is unchanged at $3.15.
Analysts on average were expecting a profit of $3.28 per share, according to Thomson ReutersI/B/E/S.
The company said it expected sales of non-consumable items – higher-margin goods such as home products and apparel – to remain under pressure as frugal customers opt for lower-margin products.
However, Dollar General said it expected same-store sales to increase by 4-5 percent through the year as key initiatives, including the rollout of tobacco products, gain traction….”
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